Evaluating Whether an Industry Presents a Sufficiently Attractive Business Opportunity

question 28

Multiple Choice

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

• A)The industry's growth potential
• B)Whether competitive pressures will likely grow stronger or weaker
• C)Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces
• D)The company's competitive position in the industry and its ability to perform industry key success factors
• E)Whether the industry's product is strongly or weakly differentiated

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Regression

In statistics, the act of estimating the relationship between variables, allowing for the prediction of one variable based on the value of another.

Residuals

The differences between observed values and the values predicted by a model, indicating the discrepancy in data fit.

Scatterplots

Graphical representations that use Cartesian coordinates to display values for typically two variables for a set of data.